Seeking Alpha

Foreign automakers draw scrutiny in China over prices

  • The China Automobile Dealers Association is in the process of gathering information on foreign cars sold in China as it probes the industry over pricing and anti-competitive practices.
  • A discrepancy in prices between imported cars in China and their overseas prices is cause for concern, says a CADA rep.
  • Regulatory pressure is an ongoing risk for automobile companies selling in China such as Ford (F), General Motors (GM), and Volkswagen (VLKAY.PK) - although their partnerships with local joint ventures has steadied the boat in the past when the regulatory waves got large.
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